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Telephone Temple Bar 2179

F2913/964

CHINA ASSOCIATION,

507-510, Cecil Chambers,

86, Strand,

London, W.C.2.

27th May, 1943.

The Under Secretary of State

for the Colonies,

Colonial Office, S.W.1.

Sir,

In reply to a question asked in the House of Commons on October 14 about the Government's decision to relinquish extra- territorial rights, an assurance was given by Mr. Law that the decision did not affect the future status of Hongkong. It is understood that a decision regarding the future of the Leased Territory has not yet been reached. It is hoped that the China Association will have an opportunity of expressing an opinion on this important question, which has a bearing on the future of the Colony of Hongkong and Kowloon.

In regard to Hongkong and Kowloon the China Association is apprehensive that the time may come when uninformed opinion may be misled by outside pressure to adopt the view that the proper course, when the defeat of Japan has made this practicable, may be to cede the Colony to China.

When considering the position of the Colony, it is very necessary that altruistic considerations should not entirely outweigh the material ones affecting the interests of our own country.

"

With strategical and political aspects the Association feels that it is not in a position to deal, but if we are to continue to have valuable commercial assets in the Far East, it would appear highly desirable to keep Hongkong under the British flag as a trade base and symbol of our Far Eastern interests.

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